Having Stolen the Spotlight, Now Robinhood Has to Dance [WSJ]
Historically, big drops from highs have led to long lulls in retail trading. After the dot-com bubble burst, Schwab didn’t return to its peak 2000 trading volume until 2007…. If the environment changes substantially for the worse, Robinhood would still have value in acquiring a certain kind of customer. But that might then make it most valuable as part of a bigger financial services or fintech platform. On Wall Street, the rich aren’t easy to rob.

Americans Skip Millions of Loan Payments as Coronavirus Takes Economic Toll [WSJ]
The number of accounts that enrolled in deferment, forbearance or some other type of relief since March 1 and remain in such a state rose to 106 million at the end of May, triple the number at the end of April, according to credit-reporting firm TransUnion…. The surge in missed payments suggests that the flood of layoffs related to the coronavirus has left many Americans without the means to keep up with their debts. Many people have used up their stimulus checks, and unemployment benefits in high-cost areas aren’t enough to replace paychecks or to help debt-laden borrowers pay down their bills.

Hertz: And Now for Something Completely Worthless [NYT]
It said it hoped to sell $500 million in shares, maybe even $1 billion, anyway. For sheer audacity, what Hertz was trying just takes my breath away…. On Wednesday, Jay Clayton, the agency’s chairman, said on CNBC, “We have let the company know that we have comments on their disclosure,” and added, “In most cases, when you let a company know that the S.E.C. has comments on their disclosure, they do not go forward until those comments are resolved.”
Trading in the company’s shares stopped briefly at 11:44 a.m. and in a new filing, Hertz said it had suspended its new stock offering, while it discussed matters with the S.E.C.

The first crack appears in bulls’ thesis that the stock market will rise no matter what [MarketWatch]
Stock market bears think bulls’ buying is misplaced and based mostly on momentum. Bulls counter that they have a thesis: Stocks will rise no matter what happens to the economy and with the deadly virus…. The crack in the bulls’ thesis is that contrary to their belief, the Fed is becoming measured and may have difficulty expanding its balance sheet beyond $10 trillion. In plain English, unlimited money printing is highly unlikely.

Minneapolis Fed President Says Systemic Racism Hurts the Economy [NYT]
I don’t think it’s the Fed’s place to weigh in on partisan political issues or picking sides Republican versus Democrat. But I live in Minnesota, I’m a voter in Minnesota, our employees live here. We live in our community, and if there are really pressing issues in our community, I think we have a responsibility to speak up…. Racism is an undercurrent of the status quo, and then, you have huge chunks of our population who are not getting a good education, who do not have good job opportunities — it absolutely holds our economy back.

Zoom Video backtracks, will offer end-to-end encryption to all users [MarketWatch]
The videoconferencing company, which boomed to prominence early in the coronavirus shutdown, said in a blog post Wednesday that all users, including those on its free/basic tier, will soon receive end-to-end encryption as an optional feature, with a beta version launching in July.
Zoom launched end-to-end encryption in May, but only for subscribers who paid $14.99 a month for its premium tier…. In April, Zoom was rocked by user complaints and a shareholder lawsuit that accused it of misleading customers by overstating its security measures, following a wave of so-called “Zoom bombers” who hacked into videoconferences.

Hackers Trigger Far-Reaching Disruption by Targeting Low-Profile Firm [WSJ]
Though barely known to the general public, Epiq plays a central role in a range of high-stakes legal matters. Its customers include top law firms, investment banks and industrial conglomerates…. “Somebody like Epiq gets hit, it matters to everyone,” said Eric Monzo, a Delaware lawyer in bankruptcies and reorganizations….
These attacks are more frequent, and as perpetrators have made money with them, they have become more sophisticated, say insurers and security experts. Emsisoft estimates that U.S. ransomware victims collectively paid out more than $1.3 billion to their attackers in 2019. Business downtime lasting days or weeks often costs more than the ransom itself, analysts say.

Coronavirus pandemic poses new challenge to US economy: a coin shortage [Fox Business]
"What’s happened is that with the partial closure of the economy, the flow of coins through the economy has gotten all, it's kind of stopped," Powell said. "At places where you go to give your coins and get credit at the store, get cash, folding money, those have not been working. Stores are closed. The whole system of flow has kind of come to a stop. We’re well aware of this…."
The pandemic has "significantly disrupted the supply chain and normal circulation patterns" of pennies, nickels, dimes and quarters, the Federal Reserve district banks said recently.

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KPMG Fires L.A. Partner Over Alleged Insider-Trading Tips (WSJ) KPMG LLP has fired a senior partner in its Los Angeles office, saying the unidentified partner had provided inside information about its clients to someone who had used that information in stock trading. In a statement late Monday night, the Big Four accounting firm also said it had resigned as the outside auditor of two of its clients because of the actions of the partner, who it described as the partner in charge of its audit practice in its Los Angeles business unit. KPMG said the partner "was involved in providing nonpublic client information to a third party, who then used that information in stock trades involving several West Coast companies." The firm didn't identify the third party or any of the companies involved. KPMG Said to Resign as Herbalife’s Auditor Over Investigation (Dealbook) Herbalife is poised to disclose on Tuesday that KPMG will have to resign as the company’s auditor, after the accounting firm fired a senior partner, according to a person briefed on the matter. JPMorgan Leads Job Cuts as Banks Seek to Bolster Profit (Bloomberg) Even after the industry posted its best results since 2006, the six largest U.S. banks announced plans in the first three months of this year to eliminate about 21,000 positions, or 1.8 percent of their combined workforce, according to data compiled by Bloomberg. That’s the most since 2011’s third quarter. JPMorgan Chase, whose 259,000 people produced three straight years of record profit, topped the list with 17,000 reductions scheduled by the end of 2014. Fed Warned To Reign In QE (FT) Rick Rieder, who oversees $763 billion in fixed income investments for BlackRock, spoke out as the Fed debates how long to persist with the unorthodox measures it has used to stimulate the U.S. economy. His comments add BlackRock to the growing list of Fed critics who are warning of trouble ahead for the bond market. Fitch Cuts China Debt Rating (WSJ) The credit-rating firm Tuesday lowered China's long-term local currency rating to A-plus from AA-minus, with a stable outlook. It kept the foreign-currency rating unchanged at A+, saying it is well supported by China's massive foreign exchange reserves, worth $3.387 trillion at the end of 2012. KKR, Others In Mega-Deal (NYP) Private-equity titans Henry Kravis and Steven Schwarzman are teaming up on what is likely the biggest leveraged buyout in several years. KKR has joined an investor group of Blackstone, Carlyle, TPG Capital and Temasek to bid more than $12 billion for Life Technologies, a source said. SeaWorld IPO Could Raise $621 Million (Deal Journal) SeaWorld Entertainment plans to sell 10 million shares and Blackstone Group plans to sell the other 10 million, giving each up to $270 million a piece. Following the sale, Blackstone will continue to be the company’s majority shareholder, and would hold about 70.5% of the stock if the underwriter’s sold their full option. Trip to Cuba by Beyoncé and Jay-Z Is Investigated (NYT) The United States Treasury Department has begun investigating whether Jay-Z and Beyoncé — music’s royal couple — violated the trade embargo against Cuba by traveling to the island two weeks ago during their wedding anniversary, according to officials and a person who helped arrange their visit...Questions about the megastars’ trip have been swirling for days, with some Cuban exile bloggers describing the trip as a propaganda mission “carefully planned and controlled by the Castro dictatorship.” Putin Squeezing Out UBS to Deutsche Bank Using Oligarchs (Bloomberg) OAO Sberbank, Russias’s biggest lender, and VTB Group have increased investment-banking fee income more than fivefold since 2005, according to data compiled by Freeman & Co., a New York-based consulting firm. European financial institutions including UBS, Deutsche Bank and Royal Bank of Scotland lost almost half their market share during the period. EU Launches Probe Into MasterCard (WSJ) The European Union has opened an antitrust investigation into MasterCard, following concerns that some of the credit-card company's interbank fees are anticompetitive. Citigroup To Cut Senior Posts In Streamlining (WSJ) Under Mr. Forese's plan, there no longer will be a head of securities and banking, a post that Mr. Forese had held until his elevation to his new position. Also expected to go is the head of transaction services, currently occupied by Francesco Vanni d'Archirafi. Clarence man with frog phobia wins $1.6 million verdict (Buffalo News) “I’m petrified of the little creatures,” said Marinaccio, 65. If that sounds bizarre or far-fetched, consider one of Marinaccio’s childhood memories. He traces his deep-seated fear of frogs to when he was a child in an Italian vineyard, where his parents worked. He remembers wandering to a nearby property for figs and being chased away by a man holding bullfrogs. Decades later, frogs again have Marinaccio on the run. In the spring and summer months, they show up on his driveway and lawn – keeping him inside his home. Marinaccio sued the Town of Clarence and the developer of a nearby subdivision for diverting runoff onto his land and won a $1.6 million award...Neither side knows for sure how Marinaccio’s frog phobia affected the case. But jurors who returned the verdict in his favor heard his startling testimony on the witness stand in 2009. “You people don’t understand,” Marinaccio said in court. “I am petrified. I go home at night, and I can’t get in my garage because of the frogs. They’re right in front of the damn door, OK?” He talked about how he had to call his grown daughter, who lives a few miles away, two or three nights a week to come over and shoo away the frogs. “In the winter, it’s OK, because I know there’s no frogs,” he said. “But in the summertime, I mean I’m a damn prisoner in my own home.”